Accident Benefits

Frequently Asked Questions (FAQ)

What are Accident Benefits and do I need them?

Accident benefits are the benefits for you for injuries sustained in a motor vehicle accident as a driver, a passenger or a pedestrian regardless of who is at fault. The benefits available to you are broken down into several sections.

What is catastrophic?

The insurance industry considers catastrophic injuries to include traumatic brain injuries, loss of limb and paralysis.

How are income benefits calculated?

This is based on 70% of your gross salary and the policy includes $ 400.00 a week complementary to your employer benefits. To find out if you require additional income replacement benefits I recommend you review your company benefits. Would $ 400.00 a week be enough for you? You have the option to increase to $600.00, $800.00 or a $1,000.00 per week.

A/B Income Replacement Calculation

Calculation of IRB for a server a server is making $12.20 per hour (as his serves alcohol). The minimum wage in Ontario is $14.00. He makes tips which will not be declared on T4 or pay stub as they vary and would be up to the server to claim them on his taxes.

He is currently out of work due to an auto accident and wants to know why he is only getting $12.20 per hour for his income replacement benefit.
The income replacement is based on proof such as pay stubs, T4, if he is not claiming the tips the benefit is based on what he actually makes.

What would have happened if he increased his accident benefits coverage?

The amount of loss of income would still be based on the proof of the wages. Increasing his benefits would not be wise as the maximum he would receive would be $400.00 per week.

What is the limit for Medical Rehabilitation and Attendant Care?

For non-catastrophic injuries such as breaks, whiplash sprains etc. which are serious but not life-threatening the standard limit included is $ 65,000.00. As you can appreciate with todays’ health costs $65,000.00 may not cover a lot of rehabilitation. If you would like, you can enhance your protection to $130,000.00 or $1,000,000.00.

Why do I need to purchase Caregiver Benefits, Housekeeping and Home Maintenance?

This benefit provides coverage for assistance with any dependents you are the primary caregiver for. Such assistance may include housekeeping our home maintenance. This applies to catastrophic injuries only. The limits are $250.00 per week for the first dependant plus $ 50.00 each week for each additional dependant. The housekeeping and home maintenance are $100.00 per week. The good news is you can purchase this coverage to extend to non-catastrophic injuries.